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Published on March 18, 2008

Twelve of the 38 projects are being jointly develop between local and foreign groups. The global partners are mostly from the Middle East, Singapore and the United States.

The remaining 26 are by local developers, but most of them will be signing contracts with global chains to run the apartments.

A breakdown of the new supply shows a strong concentration along Sukhumvit Road, with 3,659 units, or 56 per cent of the new supply.

The central business district (CBD), which includes the Sathorn, Silom and Lumpini areas, will house 1,029 units, or 15.6 per cent of the new supply.

The remaining 1,892 units are located outside of these areas.

Colliers managing director Patima Jeerapaet said there were now about 10,685 units in 75 serviced apartments in Bangkok. The sector enjoyed an average occupancy rate of 83.33 per cent last year. In 2006, average occupancy was slightly higher at 85 per cent.

However, the occupancy rate this year is expected to fall 1-2 per cent from last year, because 2,718 grade-A and -B units will open this year.

The study shows demand will remain robust and the occupancy rate high.

Patima said the number of tourists coming to Bangkok this year would jump significantly from last year. She expects competition to heat up between new and established apartments. Colliers research manager Risinee Sarikaputra said 36 per cent of foreigners staying in serviced apartments worked in the CBD.

The rest are here for either leisure or business, staying between one week and three months per visit.

Somluck Srimalee

The Nation